UTC 4Q Net Rises 11% as Profits Climb at Aircraft Unit

An S-70B Seahawk is shown. The helicopter is manufactured by Sikorsky Aircraft, a subsidiary of United Technologies.Sikorsky Aircraft

Carried by stronger profits at its Pratt & Whitney aircraft division, United Technologies (UTX) posted an 11% jump in fourth-quarter profits on Wednesday.

The blue-chip diversified manufacturer said it earned $1.33 billion, or $1.47 a share, compared with a profit of $1.2 billion, or $1.31 a share, a year earlier. Excluding one-time items, it earned $1.46 a share, matching estimates from analysts.

UTC, which is the world’s largest maker of elevators and air conditioners, said revenue inched up just 0.7% to $14.97 billion, slightly trailing the Street’s view of $15.07 billion. Gross margins expanded to 27.5% from 26%.

“UTC closed a solid 2011 despite tough compares in the commercial aerospace aftermarket and shorter cycle Carrier businesses and significant research and development investment in the quarter," CEO Louis Chenevert said in a statement.

UTC’s results were boosted by a 12% rise in operating profits at its Pratt & Whitney division, where sales gained 1.3%.

The company’s Otis elevators business enjoyed a 7.7% increase in profits on a 3.3% bump in revenue. New equipment orders were also up 2% last quarter.

Looking ahead, UTX reaffirmed its 2012 EPS forecast of $5.80 to $5.00, which represents a 6% to 9% increase over the year before, as well as sales of $59 billion to $60 billion. Analysts had been calling for EPS of $5.56 on more robust revenue of $64.62 billion.